McAfee Tops Estimates on Strong Consumer Business Growth

Company says consumer segment revenue grew 23% in the fourth quarter as people are ‘living more of their lives online.’
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McAfee Corp.  (MCFE) - Get Report  topped analyst estimates for revenue and earnings in the fourth quarter, saying strong growth in its consumer business helped drive the better-than-expected performance.

The company reported revenue of $777 million and adjusted earnings per share of 38 cents after the bell on Tuesday. The company had been expected to report net income of $143.3 million, or 31 cents a share, on sales of $738.6 million, based on a FactSet survey of 10 analysts.

"McAfee achieved significant increases in revenue, subscribers, profitability and cash flow to close out the year. We secure our customers’ ever increasing digital footprint as people are living more of their lives online. This accelerating transformation combined with our market leading capabilities drove 23% revenue growth in our consumer business, 14% growth in total net revenue, and strong growth in adjusted EBITDA in Q4,” said CEO Peter Leav in a statement.

The company forecasted first-quarter revenue of $725 million to $735 million and total Adjusted EBITDA of $275 million to $285 million.

Shares of McAfee rose 77 cents, or 4%, to $20.22 in after-hours trading.

The stock has risen 18.7% since the company last reported earnings on Nov. 19.

Elsewhere Tuesday, cyber security stocks were generally lower.

The Prime Cyber Security ETF  (HACK) - Get Report fell $1.19, or 2%, to 58.21.

The First Trust NASDAQ Cybersecurity ETF  (CIBR) - Get Report fell 65 cents, or 1.5%, to 43.54.

Among notable cyber security stocks, two rose while fifteen fell. 

Among individual names, SailPoint  (SAIL) - Get Report shares rose $1.11, or 1.9%, to $59.32 while Cisco  (CSCO) - Get Report shares rose 8 cents, or 0.2%, to $45.51.

Proofpoint  (PFPT) - Get Report led decliners, falling $6.83, or 5.2%, to $125.72 while Splunk  (SPLK) - Get Report  shares fell $7.02, or 4.4%, to $153.80.

In the broader markets, the Nasdaq Composite Index fell 67.85 points, or 0.5%, to 13,465.20, after clawing back from much steeper declines early in the session.